A bottom-up institutional approach to cooperative governance of risky commons

Abstract

Avoiding the effects of climate change may be framed as a public goods dilemma1, in which the risk of future losses is non-negligible, while realizing that the public good may be far in the future. The limited success of existing attempts to reach global cooperation has been also associated with a lack of sanctioning institutions and mechanisms to deal with those who do not contribute to the welfare of the planet or fail to abide by agreements. Here we investigate the emergence and impact of different types of sanctioning to deter non-cooperative behaviour in climate agreements. We show that a bottom-up approach, in which parties create local institutions that punish free-riders, promotes the emergence of widespread cooperation, mostly when risk perception is low, as it is at present. On the contrary, global institutions provide, at best, marginal improvements regarding overall cooperation. Our results clearly suggest that a polycentric approach involving multiple institutions is more effective than that associated with a single, global one, indicating that such a bottom-up, self-organization approach, set up at a local scale, provides a better ground on which to attempt a solution for such a complex and global dilemma.

@article { vasconcelos13,
abstract = {Avoiding the effects of climate change may be framed as a public goods dilemma1, in which the risk of future losses is non-negligible, while realizing that the public good may be far in the future. The limited success of existing attempts to reach global cooperation has been also associated with a lack of sanctioning institutions and mechanisms to deal with those who do not contribute to the welfare of the planet or fail to abide by agreements. Here we investigate the emergence and impact of different types of sanctioning to deter non-cooperative behaviour in climate agreements. We show that a bottom-up approach, in which parties create local institutions that punish free-riders, promotes the emergence of widespread cooperation, mostly when risk perception is low, as it is at present. On the contrary, global institutions provide, at best, marginal improvements regarding overall cooperation. Our results clearly suggest that a polycentric approach involving multiple institutions is more effective than that associated with a single, global one, indicating that such a bottom-up, self-organization approach, set up at a local scale, provides a better ground on which to attempt a solution for such a complex and global dilemma.},
journal = {Nature Climate Change},
keywords = {Game Theory;Multi-Agent Societies;Miscellaneous;},
month = {September},
number = {9},
pages = {797-801},
title = {A bottom-up institutional approach to cooperative governance of risky commons},
volume = {3},
year = {2013},
author = {Vítor V. Vasconcelos and Francisco C. Santos and Jorge M. Pacheco}
}